Philippine Central Bank Proposes 12-Month OPS Registration Moratorium, Tighter VASP Rules

The Bangko Sentral ng Pilipinas (BSP) has issued a draft circular proposing a 12-month suspension of acceptance of new registrations for Operators of Payment Systems (OPS). The central bank said the move is part of a comprehensive review of its classification and licensing framework. Under the draft, the BSP would stop processing new OPS applications during the moratorium. Applications already submitted before the suspension period could continue to be evaluated, but the regulator would neither approve nor reject them until the suspension ends. Entities that require OPS registration may not engage in related activities unless specifically authorized by the BSP. The draft also introduces stricter oversight for payment arrangements involving Virtual Asset Service Providers (VASPs). Supervised institutions that offer merchant acquiring services must establish direct merchant arrangements with licensed VASPs. These relationships will be subject to enhanced due diligence, transaction and settlement limits, and other risk management measures. The requirements apply to virtual asset enterprises licensed, registered, or authorized by the BSP, the Philippine Securities and Exchange Commission, or other regulators. VASPs are grouped with betting, gaming, adult industry, and money service businesses for regulatory purposes. If the draft circular is approved, it will take effect 15 days after publication. The BSP is currently soliciting public comments on the proposal.